Varex Imaging Corp

Technology
Industrial Machinery/Components
www.vareximaging.com

Earnings Score
Moat Score
Safety Score

Market Cap $640.89M
PE -13
Debt $492.90M
Cash $170.40M
EV $963.39M
FCF $20.40M

Earnings

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Sales & Net Margins

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Earnings	-$47.70M
EBIT	$32.10M
ROE	-9%
ROA	3%
FCF	$20.40M
Equity	$549.20M
Growth Stability	-184%
PE	-13.44
PEG	-0.33
PB	1.17
P/FCF	31.42
P/S	0.79
Price/Cash	0.27
Debt/Equity	0.9
Debt/FCF	24.16
Net Margins	-6%
Gross Margins	32%
Op. Margins	4%
Earnings CAGR	-2%
Sales Growth YoY	-10%
Sales Growth QoQ	-2%
Sales CAGR	4%
FCF CAGR	-2%
Equity CAGR	4%
Earnings Stability	-0.03
Earnings Growth YoY	-257%
Earnings Growth QoQ	-4K%

Earnings CAGR 5Y	41%
Sales CAGR 5Y	3%
FCF CAGR 5Y	5%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	-0%
Sales CAGR 3Y	-0%
FCF CAGR 3Y	-9%
Equity CAGR 3Y	5%
Market Cap	$640.89M
Revenue	$811.00M
Assets	$1.22B
Total Debt	$492.90M
Cash	$170.40M
Shares Outstanding	40.77M
EV	963.39M
Earnings Score	6%
Moat Score	14%
Safety Score	41%
Final Score	20%
Working Capital	454M
Current Ratio	3.32
Gross Profit	$256.90M
Shares Growth 3y	1%
Equity Growth QoQ	-8%
Equity Growth YoY	-5%

Assets & ROA

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Stockholders Equity & ROE

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Varex Imaging Corp designs and manufactures X-ray imaging components. It operates in two segments Medical and Industrial. The Medical segment, which is the key revenue driver, designs, manufactures, sells, and services X-ray imaging components comprising X-ray tubes, digital flat panel image detectors, high voltage connectors, ionization chambers, and buckys among others. The Industrial segment designs, manufactures, sells, and services Linatron X-ray accelerators, X-ray tubes, digital flat panel detectors and high voltage connectors among others. It has manufacturing, research, and development operation in the United States, Europe, Philippines and China, and sales and service operations throughout the world.

SEC Filings

Direct access to Varex Imaging Corp (VREX) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-K Sep 27
- 10-Q Jun 28
- 10-Q Mar 29
2023
- 10-Q Dec 29
- 10-K Sep 29
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 30
- 10-K Sep 30
- 10-Q Jul 01
- 10-Q Apr 01

Sector Comparison

How does Varex Imaging Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Varex Imaging Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability -3%

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Varex Imaging Corp Discounted Cash Flow

Fully customizable DCF calculator online for Varex Imaging Corp.

Years

Calculation mode

= $175M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$20M	$20M	$19M	$19M	$19M	$18M	$18M	$17M	$17M	$17M	$16M	$161M
DCF		$18M	$16M	$14M	$13M	$11M	$10M	$8.9M	$7.9M	$7M	$6.2M	$62M
Value	$175M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	09/2021	09/2022	09/2023	09/2024	TTM
Net Margins	13%	11%	7%	4%	2%	-8%	2%	4%	5%	-6%	-6%
ROA	-	18%	8%	5%	4%	-3%	6%	7%	6%	3%	3%
ROE	-	13%	14%	6%	3%	-12%	4%	6%	8%	-9%	-9%

Bad Net Margins (-5.88%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	09/2021	09/2022	09/2023	09/2024	TTM
Debt over FCF	-	0	8.9	6.52	8.28	-49.88	6.24	-102.68	5.13	24.16	24.16
Debt over Equity	-	0	1.28	0.99	0.96	1.1	0.97	0.83	0.77	0.9	0.9
Growth Stability	-	-	-	41%	32%	-184%	-	-	-	-149%	-184%

Bad Debt/FCF ratio (24.16)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.9)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-184%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	10/2015	09/2016	09/2017	09/2018	09/2019	10/2020	09/2021	09/2022	09/2023	09/2024	CAGR 5Y
Revenue YoY growth	-	-2%	13%	11%	1%	-5%	11%	5%	4%	-9%	3%
Earnings YoY growth	-	-14%	-25%	-47%	-44%	-474%	-130%	74%	59%	-199%	41%
Equity YoY growth	-	6%	-28%	13%	5%	4%	7%	10%	6%	-5%	6%
FCF YoY growth	-	-11%	20%	19%	-20%	-120%	-852%	-106%	-2K%	-77%	5%